SlideShare ist ein Scribd-Unternehmen logo
1 von 29
Downloaden Sie, um offline zu lesen
Securities and Exchange Board of India
A CRITICAL ANALYSIS
Flow of Presentation
• A Brief History
• Introduction
• SEBI - Preamble
• Objectives
• Functions
• Contributions
• Summary

MET-IOM

SEBI- A Critical Analysis

2
A Brief History
Prior to SEBI the security markets and stock exchange were regulated by
several Acts, which were:
• The Bombay Securities Contracts Control Act, 1925
• The Capital Issues (Control) Act, 1947
• The Securities Contracts (Regulation) Act, 1956
• Registrar of Companies (The Indian Companies Act, 1956)

For a healthy growth of capital markets and to prevent malpractices in
trading, the Government subsequently decided to “set up a separate board
for the regulation and orderly functioning of Stock Exchange and the
securities industry”
MET-IOM

SEBI- A Critical Analysis

3
A Brief History (Contd…)
• In July 1987, the Cabinet Committee on Economic Affairs approved the
broad features of SEBI and process of establishment of SEBI was commenced
• The statement of Purpose and Approach outlined twin objectives of SEBI as,
- promoting healthy and orderly development of securities markets and
- ensuring adequate investor protection and emphasized the developmental philosophy
with which SEBI would operate

MET-IOM

SEBI- A Critical Analysis

4
Introduction
• SEBI was established as a statutory authority through an Ordinance
promulgated on 30.01.1992 by the President of India
• SEBI is the regulator for the Securities Market in India
• It is managed by a Board comprising of nine members including the
chairman
• Paradoxically this is a positive outcome of the Harshad Mehta Securities
Scam of 1990-91
MET-IOM

SEBI- A Critical Analysis

5
SEBI - PREAMBLE
The Preamble of the Securities and Exchange Board of India describes
the basic functions of the Securities and Exchange Board of India as
"...to protect the interests of investors in securities and to promote the
development of, and to regulate the securities market and for matters
connected therewith or incidental thereto"

MET-IOM

SEBI- A Critical Analysis

6
Purpose and Role of SEBI
• SEBI was set up with the main purpose of keeping a check on malpractices
and protect the interest of investors. It was set up to meet the needs of three
groups
• Issuers:
• For issuers it provides a market place in which they can raise finance fairly and easily

• Investors:
• For investors it provides protection and supply of accurate and correct information

• Intermediaries:
• For intermediaries it provides a competitive professional market

MET-IOM

SEBI- A Critical Analysis

7
Basic Objectives
• To protect the interests of investors in securities
• To promote the development of Securities Market
• To regulate the securities market and
• For matters connected therewith or incidental thereto

MET-IOM

SEBI- A Critical Analysis

8
Powers of SEBI
• Powers relating to stock exchanges and intermediaries:
• SEBI has wide powers regarding the stock exchanges and intermediaries dealing
in securities
• It can ask information from the stock exchanges and intermediaries regarding
their business transactions for inspection/scrutiny and other purposes

MET-IOM

SEBI- A Critical Analysis

9
Powers of SEBI (Contd…)
• Powers relating to monetary penalties:
• SEBI’ has been empowered to impose monetary penalties on capital market
intermediaries and other participants for a range of violations
• It can even impose suspension of their registration for a short period

MET-IOM

SEBI- A Critical Analysis

10
Powers of SEBI (Contd…)
• Powers to initiate actions relating to functions assigned:
• SEBI has a power to initiate actions in regard to functions assigned
• For example, it can issue guidelines to different intermediaries or can introduce
specific rules for the protection of interests of investors

MET-IOM

SEBI- A Critical Analysis

11
Powers of SEBI (Contd…)
• Powers under Securities Contracts (Regulation) Act :
• For effective regulation of stock exchanges, the Ministry of Finance issued a
Notification on 13 September, 1994 delegating several of its powers under the
Securities Contracts (Regulation) Act to SEBI
• SEBI is also empowered by the Finance Ministry to nominate three members on
the Governing Body of every stock exchange instead of earlier practice of
government making such nominations

MET-IOM

SEBI- A Critical Analysis

12
Powers of SEBI (Contd…)
• Powers to regulate business of stock exchanges :
• SEBI is empowered to regulate the business of stock exchanges
• Intermediaries associated with the securities market as well as mutual funds,
fraudulent and unfair trade practices relating to securities and regulation of
acquisition of shares and takeovers of companies

MET-IOM

SEBI- A Critical Analysis

13
Powers of SEBI (Contd…)
• Powers relating to insider trading:
• SEBI has power to regulate insider trading or can regulate the functions of
merchant bankers

MET-IOM

SEBI- A Critical Analysis

14
Functions of SEBI
• The SEBI performs functions to meet its objectives.
• Functions can be broadly divided into:
• Protective functions
• Developmental functions
• Regulatory functions

MET-IOM

SEBI- A Critical Analysis

15
Functions of SEBI (Contd…)
• Protective Functions• It Checks Price Rigging
• It Prohibits Insider trading
• SEBI prohibits fraudulent and Unfair Trade Practices
• SEBI undertakes steps to educate investors
• SEBI promotes fair practices and code of conduct in security market

MET-IOM

SEBI- A Critical Analysis

16
Functions of SEBI (Contd…)
• Developmental Functions• SEBI promotes training of intermediaries of the securities market.
• SEBI tries to promote activities of stock exchange by adopting flexible and
adoptable approach in following way:
• SEBI has permitted internet trading through registered stock brokers.
• SEBI has made underwriting optional to reduce the cost of issue.
• Even initial public offer of primary market is permitted through stock exchange.

MET-IOM

SEBI- A Critical Analysis

17
Functions of SEBI (Contd…)
• Regulatory Functions• It has framed rules and regulations and a code of conduct to regulate the
intermediaries such as merchant bankers, brokers, underwriters, etc.
• It registers and regulates the working of all those who are associated with stock
exchange in any manner.
• It registers and regulates the working of mutual funds etc.
• It regulates takeover of the companies.
• It conducts inquiries and audit of stock exchanges.

MET-IOM

SEBI- A Critical Analysis

18
Change in the Market
• The complete transformation of the trading, clearing and settlement
infrastructure
• Dramatic transformation to a paperless market and transparent trading
system
• Cutting the settlement cycle and now going forward towards a T+1
settlement system
• SEBI has made the markets much safer for investors
MET-IOM

SEBI- A Critical Analysis

19
Contributions
• Issue of guidelines
• Public interest advertisements
• Dealing with complaints of investors
• Investor education
• Investor surveys
• Introduction to stockinvest
• Disclosures by companies

MET-IOM

SEBI- A Critical Analysis

20
Board Members of SEBI
Shri U. K. Sinha,
Chairman, SEBI,
SEBI Bhavan, Bandra Kurla Complex,
Bandra (E), Mumbai - 400051
Shri Rajeev Kumar Agarwal
Whole-Time Member, SEBI,
SEBI Bhavan, Bandra Kurla Complex,
Bandra (E), Mumbai - 400051

Shri V. K. Jairath
194 B Kalpatru Horizon,
S.K. Ahire Marg, Worli,
Mumbai 400018
Member Appointed

Shri Prashant Saran
Whole-Time Member, SEBI,
SEBI Bhavan, Bandra Kurla Complex,
Bandra (E), Mumbai - 400051.

MET-IOM

Shri Arvind Mayaram
Secretary,
Department of Economic Affairs,
Ministry of Finance, New Delhi
Member Nominated

Shri S. Raman
Whole-Time Member, SEBI,
SEBI Bhavan, Bandra Kurla Complex,
Bandra (E), Mumbai - 400051.

SEBI- A Critical Analysis

21
BOARD MEMBERS (contd..)

Shri Anand Sinha
Deputy Governor
Reserve Bank of India
Member Nominated

MET-IOM

Shri Naved Masood
Secretary,
Ministry of Corporate Affairs
Member Nominated

SEBI- A Critical Analysis

Shri Prakash Chandra Chhotaray
IRS (Retired Chairman of Income
Tax Settlement Commission,
New Delhi)
Part-time Member

22
Summary
• For the development of any economy
• Capital Market, which is one of the main organ to mobilize funds of
huge order
• shall evolve all steps to develop the market
• simultaneously bringing in the credibility in the financial market,
which is watched world wide
• through effective and speedy implementable regulations, ultimately,
protecting the interest of the Investors and the Country

MET-IOM

SEBI- A Critical Analysis

23
Know your Stock Markets
• Major Stock Exchanges in India:
• National Stock Exchange (NSE)
• Bombay Stock Exchange (BSE)
• MCX’SX Stock Exchange (MCX’sx)

• Various products for investments:
• Equities
• Derivatives
• Commodities
• Currencies / Forex
MET-IOM

SEBI- A Critical Analysis

24
Terminologies used in Stock Markets
• Primary Market and Secondary Market
• Broker or Brokerage Firm
• Know Your Customers (KYC)
• Demat
• Trading
• Delivery
• Intraday
• Blue Chip Stocks
• Bull and Bear Market
MET-IOM

SEBI- A Critical Analysis

25
Terminologies used in Stock Markets
• Investor and Speculator
• Quote
• Settlement
• Portfolio
• Liquidity
• Volatility
• Hedging
• Arbitrage
• Insider Trading
MET-IOM

SEBI- A Critical Analysis

26
Know more about Stock Markets
• https://www.nseindia.com
• https://www.bseindia.com
• http://www.moneycontrol.com
• http://www.managementparadise.com/forums/stock-markets-tips-gyan/22083definations-every-word-used-stock-market-known-must-read.html
• http://www.tmxmoney.com/en/research/glossary.html
• http://www.timothysykes.com/2013/06/trading-terms-you-need-to-know/
MET-IOM

SEBI- A Critical Analysis

27
Presented BySr. No. Name

Roll
No.

1

ANSHARI NAWED ABDUL VAHID

61

2

ATTRA GURUDEV RAVINDERSINGH

62

3

COUTINHO JOHN PETER

63

4

JAIN ASHISH GANPATHLAL

74

5

KHAN DANISH WAHID

80

6

PAYYAPPATE RASHMI RAVINDRAN

103

MET-IOM

SEBI- A Critical Analysis

28
Thank You

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

PRIMARY MARKET
PRIMARY MARKETPRIMARY MARKET
PRIMARY MARKET
 
Stock exchanges in india
Stock exchanges in indiaStock exchanges in india
Stock exchanges in india
 
Sebi
SebiSebi
Sebi
 
Indian capital market
Indian capital marketIndian capital market
Indian capital market
 
Security and Exchange Board of India Act(SEBI)
Security and Exchange Board of India Act(SEBI)Security and Exchange Board of India Act(SEBI)
Security and Exchange Board of India Act(SEBI)
 
Sebi
Sebi Sebi
Sebi
 
Sebi presentation
Sebi presentationSebi presentation
Sebi presentation
 
SEBI ACT 1992
SEBI ACT 1992SEBI ACT 1992
SEBI ACT 1992
 
Security And Exchange Board (SEBI)
Security And Exchange Board (SEBI)Security And Exchange Board (SEBI)
Security And Exchange Board (SEBI)
 
Sebi ppt
Sebi pptSebi ppt
Sebi ppt
 
Brief history of stock exchange in india
Brief history of stock exchange in indiaBrief history of stock exchange in india
Brief history of stock exchange in india
 
SEBI
SEBISEBI
SEBI
 
Unit 1 primary market
Unit 1   primary marketUnit 1   primary market
Unit 1 primary market
 
SEBI
SEBISEBI
SEBI
 
SEBI ACT 1992
SEBI ACT 1992SEBI ACT 1992
SEBI ACT 1992
 
Role and functions of sebi
Role and functions of sebiRole and functions of sebi
Role and functions of sebi
 
Merchant Banking in India
 Merchant Banking in India  Merchant Banking in India
Merchant Banking in India
 
STOCK EXCHANGES IN INDIA
STOCK EXCHANGES IN INDIASTOCK EXCHANGES IN INDIA
STOCK EXCHANGES IN INDIA
 
SEBI
SEBISEBI
SEBI
 
Sebi
SebiSebi
Sebi
 

Ähnlich wie Securities and exchange board of india

Ähnlich wie Securities and exchange board of india (20)

SEBI - Security Exchange Board of India
SEBI - Security Exchange Board of IndiaSEBI - Security Exchange Board of India
SEBI - Security Exchange Board of India
 
CL MOD 2 PART 5.ppt
CL MOD 2 PART 5.pptCL MOD 2 PART 5.ppt
CL MOD 2 PART 5.ppt
 
Sebi
SebiSebi
Sebi
 
SEBI
SEBISEBI
SEBI
 
Sebi
SebiSebi
Sebi
 
SEBI with Subrato Roy Case
SEBI with Subrato Roy CaseSEBI with Subrato Roy Case
SEBI with Subrato Roy Case
 
Capital market
Capital marketCapital market
Capital market
 
Capital Market
Capital MarketCapital Market
Capital Market
 
SEBI ACT 1992.pptx.pptx
SEBI  ACT 1992.pptx.pptxSEBI  ACT 1992.pptx.pptx
SEBI ACT 1992.pptx.pptx
 
Sebi ppt
Sebi pptSebi ppt
Sebi ppt
 
Capital Market Reforms in India
Capital Market Reforms in IndiaCapital Market Reforms in India
Capital Market Reforms in India
 
1.2 SEBI.pptx
1.2 SEBI.pptx1.2 SEBI.pptx
1.2 SEBI.pptx
 
Security and exchange board of india act(sebi)
Security and exchange board of india act(sebi)Security and exchange board of india act(sebi)
Security and exchange board of india act(sebi)
 
sebi presentation useful for bussiness analytics
sebi presentation useful for bussiness analyticssebi presentation useful for bussiness analytics
sebi presentation useful for bussiness analytics
 
Security and exchnge board of India limited
Security and exchnge board of India limitedSecurity and exchnge board of India limited
Security and exchnge board of India limited
 
sebippt-180328183634.pdf is eduacation based
sebippt-180328183634.pdf is eduacation basedsebippt-180328183634.pdf is eduacation based
sebippt-180328183634.pdf is eduacation based
 
Fm ppt
Fm pptFm ppt
Fm ppt
 
sebii.ppt
sebii.pptsebii.ppt
sebii.ppt
 
Sebi final ppt class
Sebi final ppt classSebi final ppt class
Sebi final ppt class
 
Regulatory system
Regulatory systemRegulatory system
Regulatory system
 

Mehr von Ashish Jain

Schedule 3 of Companies act 2013
Schedule 3 of Companies act 2013Schedule 3 of Companies act 2013
Schedule 3 of Companies act 2013Ashish Jain
 
Voluntary retirement scheme
Voluntary retirement schemeVoluntary retirement scheme
Voluntary retirement schemeAshish Jain
 
Business Valuation
Business ValuationBusiness Valuation
Business ValuationAshish Jain
 
Human resource planning and Job Evaluation
Human resource planning and Job EvaluationHuman resource planning and Job Evaluation
Human resource planning and Job EvaluationAshish Jain
 
Hygiene and Annoying Habits at Workplace
Hygiene and Annoying Habits at WorkplaceHygiene and Annoying Habits at Workplace
Hygiene and Annoying Habits at WorkplaceAshish Jain
 
Operations Scheduling
Operations SchedulingOperations Scheduling
Operations SchedulingAshish Jain
 
Business Model for Jute Products
Business Model for Jute ProductsBusiness Model for Jute Products
Business Model for Jute ProductsAshish Jain
 
Kotak Credit Cards
Kotak Credit CardsKotak Credit Cards
Kotak Credit CardsAshish Jain
 

Mehr von Ashish Jain (9)

Schedule 3 of Companies act 2013
Schedule 3 of Companies act 2013Schedule 3 of Companies act 2013
Schedule 3 of Companies act 2013
 
Voluntary retirement scheme
Voluntary retirement schemeVoluntary retirement scheme
Voluntary retirement scheme
 
Business Valuation
Business ValuationBusiness Valuation
Business Valuation
 
Human resource planning and Job Evaluation
Human resource planning and Job EvaluationHuman resource planning and Job Evaluation
Human resource planning and Job Evaluation
 
Hygiene and Annoying Habits at Workplace
Hygiene and Annoying Habits at WorkplaceHygiene and Annoying Habits at Workplace
Hygiene and Annoying Habits at Workplace
 
Operations Scheduling
Operations SchedulingOperations Scheduling
Operations Scheduling
 
Business Model for Jute Products
Business Model for Jute ProductsBusiness Model for Jute Products
Business Model for Jute Products
 
Kotak Credit Cards
Kotak Credit CardsKotak Credit Cards
Kotak Credit Cards
 
Android
AndroidAndroid
Android
 

Kürzlich hochgeladen

Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptxFinTech Belgium
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfMichael Silva
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxOffice for National Statistics
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESKumarJayaraman3
 

Kürzlich hochgeladen (20)

Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptx
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdf
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
 

Securities and exchange board of india

  • 1. Securities and Exchange Board of India A CRITICAL ANALYSIS
  • 2. Flow of Presentation • A Brief History • Introduction • SEBI - Preamble • Objectives • Functions • Contributions • Summary MET-IOM SEBI- A Critical Analysis 2
  • 3. A Brief History Prior to SEBI the security markets and stock exchange were regulated by several Acts, which were: • The Bombay Securities Contracts Control Act, 1925 • The Capital Issues (Control) Act, 1947 • The Securities Contracts (Regulation) Act, 1956 • Registrar of Companies (The Indian Companies Act, 1956) For a healthy growth of capital markets and to prevent malpractices in trading, the Government subsequently decided to “set up a separate board for the regulation and orderly functioning of Stock Exchange and the securities industry” MET-IOM SEBI- A Critical Analysis 3
  • 4. A Brief History (Contd…) • In July 1987, the Cabinet Committee on Economic Affairs approved the broad features of SEBI and process of establishment of SEBI was commenced • The statement of Purpose and Approach outlined twin objectives of SEBI as, - promoting healthy and orderly development of securities markets and - ensuring adequate investor protection and emphasized the developmental philosophy with which SEBI would operate MET-IOM SEBI- A Critical Analysis 4
  • 5. Introduction • SEBI was established as a statutory authority through an Ordinance promulgated on 30.01.1992 by the President of India • SEBI is the regulator for the Securities Market in India • It is managed by a Board comprising of nine members including the chairman • Paradoxically this is a positive outcome of the Harshad Mehta Securities Scam of 1990-91 MET-IOM SEBI- A Critical Analysis 5
  • 6. SEBI - PREAMBLE The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto" MET-IOM SEBI- A Critical Analysis 6
  • 7. Purpose and Role of SEBI • SEBI was set up with the main purpose of keeping a check on malpractices and protect the interest of investors. It was set up to meet the needs of three groups • Issuers: • For issuers it provides a market place in which they can raise finance fairly and easily • Investors: • For investors it provides protection and supply of accurate and correct information • Intermediaries: • For intermediaries it provides a competitive professional market MET-IOM SEBI- A Critical Analysis 7
  • 8. Basic Objectives • To protect the interests of investors in securities • To promote the development of Securities Market • To regulate the securities market and • For matters connected therewith or incidental thereto MET-IOM SEBI- A Critical Analysis 8
  • 9. Powers of SEBI • Powers relating to stock exchanges and intermediaries: • SEBI has wide powers regarding the stock exchanges and intermediaries dealing in securities • It can ask information from the stock exchanges and intermediaries regarding their business transactions for inspection/scrutiny and other purposes MET-IOM SEBI- A Critical Analysis 9
  • 10. Powers of SEBI (Contd…) • Powers relating to monetary penalties: • SEBI’ has been empowered to impose monetary penalties on capital market intermediaries and other participants for a range of violations • It can even impose suspension of their registration for a short period MET-IOM SEBI- A Critical Analysis 10
  • 11. Powers of SEBI (Contd…) • Powers to initiate actions relating to functions assigned: • SEBI has a power to initiate actions in regard to functions assigned • For example, it can issue guidelines to different intermediaries or can introduce specific rules for the protection of interests of investors MET-IOM SEBI- A Critical Analysis 11
  • 12. Powers of SEBI (Contd…) • Powers under Securities Contracts (Regulation) Act : • For effective regulation of stock exchanges, the Ministry of Finance issued a Notification on 13 September, 1994 delegating several of its powers under the Securities Contracts (Regulation) Act to SEBI • SEBI is also empowered by the Finance Ministry to nominate three members on the Governing Body of every stock exchange instead of earlier practice of government making such nominations MET-IOM SEBI- A Critical Analysis 12
  • 13. Powers of SEBI (Contd…) • Powers to regulate business of stock exchanges : • SEBI is empowered to regulate the business of stock exchanges • Intermediaries associated with the securities market as well as mutual funds, fraudulent and unfair trade practices relating to securities and regulation of acquisition of shares and takeovers of companies MET-IOM SEBI- A Critical Analysis 13
  • 14. Powers of SEBI (Contd…) • Powers relating to insider trading: • SEBI has power to regulate insider trading or can regulate the functions of merchant bankers MET-IOM SEBI- A Critical Analysis 14
  • 15. Functions of SEBI • The SEBI performs functions to meet its objectives. • Functions can be broadly divided into: • Protective functions • Developmental functions • Regulatory functions MET-IOM SEBI- A Critical Analysis 15
  • 16. Functions of SEBI (Contd…) • Protective Functions• It Checks Price Rigging • It Prohibits Insider trading • SEBI prohibits fraudulent and Unfair Trade Practices • SEBI undertakes steps to educate investors • SEBI promotes fair practices and code of conduct in security market MET-IOM SEBI- A Critical Analysis 16
  • 17. Functions of SEBI (Contd…) • Developmental Functions• SEBI promotes training of intermediaries of the securities market. • SEBI tries to promote activities of stock exchange by adopting flexible and adoptable approach in following way: • SEBI has permitted internet trading through registered stock brokers. • SEBI has made underwriting optional to reduce the cost of issue. • Even initial public offer of primary market is permitted through stock exchange. MET-IOM SEBI- A Critical Analysis 17
  • 18. Functions of SEBI (Contd…) • Regulatory Functions• It has framed rules and regulations and a code of conduct to regulate the intermediaries such as merchant bankers, brokers, underwriters, etc. • It registers and regulates the working of all those who are associated with stock exchange in any manner. • It registers and regulates the working of mutual funds etc. • It regulates takeover of the companies. • It conducts inquiries and audit of stock exchanges. MET-IOM SEBI- A Critical Analysis 18
  • 19. Change in the Market • The complete transformation of the trading, clearing and settlement infrastructure • Dramatic transformation to a paperless market and transparent trading system • Cutting the settlement cycle and now going forward towards a T+1 settlement system • SEBI has made the markets much safer for investors MET-IOM SEBI- A Critical Analysis 19
  • 20. Contributions • Issue of guidelines • Public interest advertisements • Dealing with complaints of investors • Investor education • Investor surveys • Introduction to stockinvest • Disclosures by companies MET-IOM SEBI- A Critical Analysis 20
  • 21. Board Members of SEBI Shri U. K. Sinha, Chairman, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Shri Rajeev Kumar Agarwal Whole-Time Member, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Shri V. K. Jairath 194 B Kalpatru Horizon, S.K. Ahire Marg, Worli, Mumbai 400018 Member Appointed Shri Prashant Saran Whole-Time Member, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. MET-IOM Shri Arvind Mayaram Secretary, Department of Economic Affairs, Ministry of Finance, New Delhi Member Nominated Shri S. Raman Whole-Time Member, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. SEBI- A Critical Analysis 21
  • 22. BOARD MEMBERS (contd..) Shri Anand Sinha Deputy Governor Reserve Bank of India Member Nominated MET-IOM Shri Naved Masood Secretary, Ministry of Corporate Affairs Member Nominated SEBI- A Critical Analysis Shri Prakash Chandra Chhotaray IRS (Retired Chairman of Income Tax Settlement Commission, New Delhi) Part-time Member 22
  • 23. Summary • For the development of any economy • Capital Market, which is one of the main organ to mobilize funds of huge order • shall evolve all steps to develop the market • simultaneously bringing in the credibility in the financial market, which is watched world wide • through effective and speedy implementable regulations, ultimately, protecting the interest of the Investors and the Country MET-IOM SEBI- A Critical Analysis 23
  • 24. Know your Stock Markets • Major Stock Exchanges in India: • National Stock Exchange (NSE) • Bombay Stock Exchange (BSE) • MCX’SX Stock Exchange (MCX’sx) • Various products for investments: • Equities • Derivatives • Commodities • Currencies / Forex MET-IOM SEBI- A Critical Analysis 24
  • 25. Terminologies used in Stock Markets • Primary Market and Secondary Market • Broker or Brokerage Firm • Know Your Customers (KYC) • Demat • Trading • Delivery • Intraday • Blue Chip Stocks • Bull and Bear Market MET-IOM SEBI- A Critical Analysis 25
  • 26. Terminologies used in Stock Markets • Investor and Speculator • Quote • Settlement • Portfolio • Liquidity • Volatility • Hedging • Arbitrage • Insider Trading MET-IOM SEBI- A Critical Analysis 26
  • 27. Know more about Stock Markets • https://www.nseindia.com • https://www.bseindia.com • http://www.moneycontrol.com • http://www.managementparadise.com/forums/stock-markets-tips-gyan/22083definations-every-word-used-stock-market-known-must-read.html • http://www.tmxmoney.com/en/research/glossary.html • http://www.timothysykes.com/2013/06/trading-terms-you-need-to-know/ MET-IOM SEBI- A Critical Analysis 27
  • 28. Presented BySr. No. Name Roll No. 1 ANSHARI NAWED ABDUL VAHID 61 2 ATTRA GURUDEV RAVINDERSINGH 62 3 COUTINHO JOHN PETER 63 4 JAIN ASHISH GANPATHLAL 74 5 KHAN DANISH WAHID 80 6 PAYYAPPATE RASHMI RAVINDRAN 103 MET-IOM SEBI- A Critical Analysis 28